Bigmouthmedia and Steve Leach: Managing Growth and Continuity

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Case Details:

Case Code : LDEN062
Case Length : 17 Pages
Period : 1997-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Bigmouthmedia Ltd.
Industry : Digital Marketing
Countries : UK; Europe; USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Setting Up a New Business in a New Industry

Leach was born in 1968, in Forres, Scotland. After finishing school, he started out with a rag trading business. He also worked for some time as salesman, fireman, and commercial pilot, but according to him, he was too headstrong and 'had too big a mouth' to work for other people...

Surviving the Dotcom Bubble Burst

By 2000, the web services market was becoming intensely competitive with the emergence of new players. Rather than operate in this environment as a provider of many services, Leach decided to focus on the core strengths of the company - brand protection and SEO.

In March 2000, when the dotcom bubble burst, a number of dotcom and e-commerce companies filed for bankruptcy. A vast majority of these companies could not withstand the sharp fall in revenues from Internet advertising and so many of them were forced to shut down business...

Merger with Global Media

Leach expected a turnover of over £15 million and profits in the range of £3 million and £4 million at Bigmouthmedia for the year 2006. The company employed around 50 people in its offices in Edinburgh, London, and New York and was reportedly turning away clients as it was unable to handle the volume of work. Between 2002 and 2006, the company turnover had increased by more than 14 times. It was widely regarded as a leading player in the UK digital marketing space and had been also declared the winner of the AXA Small to Medium-Sized Business of the Year award at National Business Awards in 2006...

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